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Solana-Based DEX Mango Markets Proposes $500,000 Settlement With CFTC

September 25, 2024

The Solana (SOL)-based decentralized exchange (DEX) Mango Markets has proposed a $500,000 settlement with the U.S. Commodity Futures Trading Commission (CFTC).

The DEX’s decentralized autonomous organization (DAO) voted this week to approve a settlement offer proposal that includes the civil penalty and an agreement to cease and desist from violating various commodity regulations.

The $500,000 civil penalty, if agreed to by the CFTC, will be paid by Mango DAO and two associated entities, Blockworks Foundation and Mango Labs, LLC.

The CFTC and the Securities and Exchange Commission (SEC) launched investigations into Mango Markets after crypto trader Avraham Eisenberg exploited the protocol for $110 million worth of digital assets in 2022.

In August, Mango DAO members voted to approve a settlement proposal to the SEC, which accused them of violating several clauses in The Securities Acts of 1933 and 1934.

If accepted by the SEC, the proposal would include a $233,228 civil penalties payment and an agreement to cease “all of its offers, sales or resales of MNGO tokens on the protocol through the means or instrumentalities of interstate commerce in the United States.”

Furthermore, the protocol would agree to destroy or otherwise make unavailable all MNGO tokens in its possession within 10 days of the SEC’s acceptance of the terms.

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